Taking A New Tack On Taxes

Our Towns

Suffield

January 27, 1997

Suffield should approach with caution First Selectman Roland Dowd's proposal for a special tax levy. His motive -- reducing the town's debt -- has merit. Residents should recognize the benefits they'd receive under his plan, but also should realize that there would be strings attached.

Mr. Dowd is proposing a special levy to reduce Suffield's $26 million long-term debt. The special assessment would be paid annually for at least five years. It could add several hundred dollars to annual payments. The money would pay off the debt principle, reducing interest. That would free money for projects the town can't afford now. That money still would come from the taxpayers' pockets.

During the special taxing period, Suffield couldn't take on any new long-term debt. That's a risky prohibition. It may mean putting off much- needed work, such as a school addition.

Reducing the size of Suffield's debt is a good idea. The town has the seventh highest per-capita debt service in the state. But Suffield isn't in a crisis. It has a respectable AA bond rating. About 14 percent of the town's budget goes toward interest -- twice the state average. With a special levy, that share would increase substantially.

For several years, voters have easily approved budgets with increases under 5 percent. But in 1991, Suffield's budget battle was so bitter it was the last town in the state to pass a budget. No one wants to risk that stalemate again.

Guaranteeing a limited run for the special tax and targeting it for a specific use might make it palatable. But if taxpayers back this idea, they should acknowledge the budget has been too low.

The debt hurts the town. It will be paid off, somehow. Whether it's under Mr. Dowd's quick hit or in bits and pieces is the taxpayers' choice.